CALGARY, Alta. — Producers Oilfield Services went through a number of changes in 2005 and reported increased revenues from the previous year.
Revenue from continuing operations in the fourth quarter was $86.1 million and operating income amounted to $22.6 million or 26.2 per cent of revenue, compared to $2.3 million and $672,000 from the same period in 2004.
“The fourth quarter was extremely busy for Producers as activity levels in the field were high and management and staff continued to work on integrating the businesses acquired throughout the year”, commented Ric Peterson, CEO of Producers Oilfield Services.
The company’s sale of Patch Point in the fourth quarter of 2005 and the international operations in January 2006 have been classified as discontinued operations and their results excluded from those of continuing operations. Continuing operations is comprised of the combination of what was previously referred to as the Oilfield Trucking segment, the Oilfield Waste segment, and the Corporate Segment.
The trucking operations were added in a series of acquisitions beginning in January 2005. As a result, the comparative amounts for the quarter and year ended Dec. 31, 2004 relate to operations that are substantially different than the continuing operations of the company.
Revenue from discontinued operations was $25.4 million for the year and operating income was $2.3 million. Net income from discontinued operations was reduced by a $2.9 million write down of the company’s investment in international operations to the amount realized on sale in January 2006.
Revenue from continuing operations for the year ended Dec. 31, 2005 amounted to $214.9 million and operating income was $56.0 million or 26 per cent of revenue. Diluted earnings per share from continuing operations were $0.31.
Changes for the company continued into 2006. Earlier in the month Producers Oilfield Services announced a merger with Mullen Group Income Fund.
“The recently announced merger of Producers with Mullen Group Income Fund is a significant opportunity to continue to create value for our shareholders and increased security and career expansion for our employees,” stated Peterson.
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